Dover Downs turns profit for first time in years
Dover Downs saw a $125,000 profit this past quarter, a relief, but at 2%, only a slight one for a hotel and casino that is trying to dig itself out of deep debt owed on its mortgage. Unfortunately, netting 125 grand, was mainly a function of cutting payroll costs. Dozens of employees were laid off over the past year.
This move was made out of desperation. Competition for Dover Downs is on the horizon. A $1.2 billion hotel and casino is coming to the DC area with two casinos already up and running in Baltimore. The complex coming to D-C is owned by MGM Grand. which means deep pockets, and bad news for Dover Downs, which already has 62% of its revenues being paid out before they see a dime. About half of that 62% goes into the Delaware general fund. Eleven percent subsidizes on-site horse racing. Just under 10-percent goes to the slot machine vendors – the casino has to lease the machines and then give that percentage to the vendors on top of the lease.
With over half of what’s coming in the door immediately going back out, officials say turning a profit is tough. For Dover downs to keep the trend going they need help from the state legislature which has its own debt to settle.
Senate bill 30 is waiting to see the senate floor – it would gradually cut down on the percentage that Delaware casinos pay to the general fund.
The general assembly meets in January when senate bill 30 will have the chance to be heard. Until then Dover downs is doing what it can to survive and taking the small profit with open arms.
